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1/ How to find insider ownership (thread)
Go to the SEC EDGAR database https://sec.gov/edgar/searchedgar/companysearch.html
Enter the stock symbol in "fast search"
Let's use Mark Zuckerberg from $FB as an example
Click "Insider transactions for this issuer" (see image)
Go to the SEC EDGAR database https://sec.gov/edgar/searchedgar/companysearch.html
Enter the stock symbol in "fast search"
Let's use Mark Zuckerberg from $FB as an example
Click "Insider transactions for this issuer" (see image)
2/ Click on the insider's name
In this case, Zuckerberg Mark
You can also search for "CEO" if you don't know their name
In this case, Zuckerberg Mark
You can also search for "CEO" if you don't know their name
3/ Click on the most recent Form 4 for the insider
4/ Click on the top file
5/ Find the shares & derivatives that the person owns
In Zuck's case, it totals about ~362 million shares
In Zuck's case, it totals about ~362 million shares
6/ Multiple by the shares (362 million) by the current $FB share price of ~$272
Zuck's $FB holdings are worth ~$98.5 billion*
(*That's a lot of money)
Zuck's $FB holdings are worth ~$98.5 billion*
(*That's a lot of money)
7/ Divide by the # of shares owned by total to see ownership on a % basis
To find total shares:
$FB investor relations website
Quarterly earnings release
Bottom of the income statement
$FB has 2,891 MM diluted shares
So Zuck owns 362 MM / 2,891 million or ~12.5%
To find total shares:
$FB investor relations websiteQuarterly earnings release Bottom of the income statement $FB has 2,891 MM diluted shares
So Zuck owns 362 MM / 2,891 million or ~12.5%
8/ Another method is to use the proxy statement
Go to the SEC EDGAR database
Click on the company name
Search for "DEF 14A"
Click "documents" under the "format" tab
Go to the SEC EDGAR database
Click on the company name
Search for "DEF 14A"
Click "documents" under the "format" tab
9/ Click on the top file that says "Definitive Proxy Statement"
*Note that proxy's are filed once per year. This one is from April 2020, so ownership can change a little bit over time due to buying/selling.
*Note that proxy's are filed once per year. This one is from April 2020, so ownership can change a little bit over time due to buying/selling.
10/ Do a "Control + F" search for "ownership" or "beneficial"
Click down until you see this table
You'll see all of the key insider's ownership
Click down until you see this table
You'll see all of the key insider's ownership
11/ I like to see >5% ownership, but there's always nuance
If it's a founder/CEO, >5% ownership is reasonable to expect
If its a hired gun CEO and the company is huge, I care more about $ amount of holdings (like for Tim Cook at $AAPL)
If it's a founder/CEO, >5% ownership is reasonable to expect
If its a hired gun CEO and the company is huge, I care more about $ amount of holdings (like for Tim Cook at $AAPL)
12/ Inside ownership isn't everything
But it does show the level of skin in the game
You want insiders to feel the pain if the share price drops
I don't mind insider selling, either. Insiders sell for all kinds of reasons.
But it does show the level of skin in the game
You want insiders to feel the pain if the share price drops
I don't mind insider selling, either. Insiders sell for all kinds of reasons.
13/ Other sites also show inside ownership, but they are often wrong
Always double-check with the primary source!
Always double-check with the primary source!
